Vizient ups revolver to $100 million, cuts term loan size again

By Sara Rosenberg

New York, Feb. 4 – Vizient Inc. upsized its five-year unfunded revolving credit facility to $100 million from $75 million and downsized its seven-year secured term loan to $1,275,000,000 from a revised amount of $1,375,000,000 and a size at launch of $1,475,000,000, according to market sources.

Concurrently, the company’s bond offering was upsized to $600 million from a revised amount of $500 million and an initial amount of $400 million.

Also, pricing on the term loan was increased to Libor plus 525 basis points from Libor plus 500 bps and the original issue discount widened to 97 from 98, sources said.

In addition, the term loan saw the extension of its 101 soft call protection to one year from six months, the addition of a net senior secured leverage ratio starting at 5 times from an original covenant-light structure, and the removal of the 12 months MFN sunset.

Furthermore, the incremental allowance was revised to $90 million subject to total leverage of 5.75 times, plus an unlimited amount subject to a senior secured leverage ratio of 3.75 times, from an unlimited amount subject to senior secured leverage of 4.5 times, sources continued.

The term loan still has a 1% Libor floor.

Barclays is the bookrunner on the now $1,375,000,000 credit facility.

Proceeds from the new debt will be used to fund the acquisition of the Spend and Clinical Resource Management and Sg2 businesses from MedAssets Inc.

Closing is expected this quarter.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

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